Private transportation generates a windfall in tax money: NIS 27.8 billion a year, about 10% of government revenues. This includes NIS 12.3 billion for cars themselves – purchase tax, customs, and annual licensing – and NIS 15.4 billion on assorted fuel taxes. These taxes are, in a sense, regressive, in that residents of outlying areas invariably have longer distances to travel and therefore pay more.
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